6.1.Ferrari

Ferrari Total Return Basic Equation
- T/S = (I/A)(1 + R/S) + (U/P)(P/S)
- Total return is driven by both investment return on assets and UW profitability relative to premium
Ferrari Role of Reserves as Source of Investable Capital

T/S = (I/A) + (R/S)(I/A + U/R)
3 specific examples of relationship btwn ratios in Ferrari
- Incr in P/S ratio will likely lead to lower investment return on assets
- P/S ratio will move in the same direction as UW profit
- UW profits and investment return on assets will move in the same direction

Author

Exam9

68277

Card Set

6.1.Ferrari

Description

Ferrari

Updated

2011-02-23T02:35:20Z